Vishal Mega Mart Q4 Review: Analysts Cite Strong Organic Sales, Private Labels As Key Tailwinds

Vishal Mega Mart Ltd.’s net profit for the fourth quarter of the financial year 2024-25 surged 88% year-on-year. Brokerages attributed the strong performance to robust festive-led demand, improved store productivity, and a higher contribution from own brands.

Both Jefferies and JPMorgan remain upbeat on the company's growth outlook, citing double-digit same-store sales growth of over 13%, store additions, and rising traction in private labels.

They noted the strong SSSG in the March quarter as a key positive, especially in a broader backdrop of tepid consumption commentary from most consumer-facing firms. They also highlighted the increasing share of own brands — now over 73% — and Vishal’s growing presence in new geographies like Kerala, Maharashtra, and Gujarat.

Both brokerages agree that while margin expansion will be modest going forward, it will be used as a lever to drive volume growth and capture market share from the unorganised sector.

Jefferies raised its adjusted Ebitda estimates for financial years 2025-26 and 2026-27 by 4–6%, leading to a hike in its target price to Rs 142.

JPMorgan increased its earnings per share forecast for the same years by 5–7%, now projecting 18% revenue CAGR and 25% EPS CAGR over the financial years 2024-25 to 2026-27.

Q4 FY25 Results

• Revenue up 23% to Rs 2,547.89 crore versus Rs 2,068.93 crore.

• Ebitda up 42.5% to Rs 357 crore versus Rs 250.5 crore.

• Margin at 14% versus 12%.

• Net profit up 88% to Rs 115.11 crore versus Rs 61.22 crore.

FY25 results

• Revenue up 20.2% to Rs 10,716.35 crore.

• Net profit up 36.8% to Rs 631.97 crore.

Read the full earnings report here.

The brokerage also said the fourth quarter marked a strong close to the year, with revenue growth accelerating sequentially, aided by early festive spending. Same-store growth came in at 13.7%, up from 10.8% in the previous quarter, indicating sustained customer traction even amid muted broader demand.

The brokerage expects store additions of around 90 annually in the medium term and called the company’s strategy of reinvesting margin gains into growth a prudent move.

Private label contribution rose to 73.1% from 71.8%, which Jefferies sees as margin-accretive despite being priced lower than national brands. The company is expanding rapidly in Kerala and running pilots in Maharashtra and Gujarat, which should further bolster revenue visibility.

The brokerage has raised its target price from Rs 125 to Rs 133 but retained its rating on the stock.

In its debut earnings call coverage, JPMorgan said Vishal Mega Mart’s growth levers are well-entrenched — including a strong private label portfolio, leading price points, and a focus on expanding into under-penetrated city tiers.

It cited a broad-based 13.4% SSSG, partly driven by festivals like Eid and Ugadi, and said benefits from the Kumbh Mela were visible in stores located in those clusters. Loyalty customers grew 17% to 14.49 crore in fiscal 2025, and top private labels like Brink, Home Select, and Yellow Hippo posted strong growth.

The brokerage said hyperlocal delivery is nearing cash breakeven and contributes up to 5% of store revenue in smaller towns. While operating margin expansion will be modest, it expects profit growth to outpace revenue on the back of operating leverage.